Apr 28, 2012
For-profit college receive almost a quarter of federal aid money, although they enroll only 9% of American college students and graduate fewer still: just 5% of bachelor’s degrees. What’s worse, graduates from for-profit colleges default on their federal loans in huge numbers: 43% of all defaults in 2008. Tax-payers might ask what America is getting for their money. The answer: 16% to 37%profits at the same underperforming, predatory schools.
Why do these schools continue to receive disproportionately large federal subsidies? In word, corruption. By spending millions of dollars on advertising, congressional lobbying, and campaign contributions, the for-profit higher-education industry ensures favorable rules and regulations; ensuring they avoid accountability, and keep the money rolling in.
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